VAT revolution. New rules for energy and stricter invoice rules
The government is proposing a large package of changes to VAT: verification of taxpayer status up to 5 years ago, new “VAT warehouses”, e-clearances and broader joint and several liability.
The Ministry of Finance has published a draft of an extensive amendment to the VAT Act and the provisions on the registration and identification of taxpayers. The document provides for several dozen modifications – from the ability to check the taxpayer’s status retrospectively to digital conveniences for travelers. The aim is to clarify settlements, simplify some procedures and expand tax supervision tools.
A historical dish
The most expected change is access to historical data in the list of VAT payers. Entrepreneurs will be able to verify the status of a contractor even 5 years ago, and on a selected date, and not – as before – only at the moment of verification. This will make it easier to assess risk and document due diligence on past transactions.
The project also introduces the institution of the so-called “VAT warehouse” as a form of simplifying settlements for entities operating in international trade in goods. At the same time, the ministry proposes to unify the rules for determining the place of electricity supply – the same rules will apply both to energy supplied by the power system and outside it. Currently, the method of delivery affects the determination of the place of taxation, which may be a source of discrepancies.
Expanding responsibility
The buyer’s joint and several liability for the seller’s arrears is to be significantly expanded. It will cover situations where the taxpayer knew that the invoice (paid using the split payment mechanism) came from a non-existent entity, documented activities that had not been performed or contained amounts that were inconsistent with reality. The responsibility will also cover some intangible services, including: advisory, management, accounting, advertising and research. Additionally, liability is extended to selected services from Annex 15, including glasswork, painting and installation works – even if the value of a single service does not exceed PLN 15,000. zloty.
The amendment also regulates a number of settlement obligations. The requirement to pay VAT within 14 days of the intra-Community purchase of a means of transport will no longer exist. It is also planned to waive the obligation to report the tax base in JPK_VAT for purchases from taxpayers who do not have their registered office or permanent place of business in Poland, if the goods and services are exempt from tax.
